SEBI Prolongs Deadline for Mutual Funds and Portfolio Managers' Data Submission
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Synopsis
On March 28, SEBI announced an extension for mutual funds and portfolio managers to submit offsite inspection data, enhancing business operations and regulatory compliance.
Key Takeaways
- SEBI has extended the submission deadline for mutual funds to 15 days.
- RTAs will continue to submit data regularly.
- Portfolio managers also have 15 days for their data submissions.
- The changes aim to ease compliance pressures.
- A new penalty system is in development to avoid multiple fines for the same violation.
Mumbai, March 28 (NationPress) In an effort to enhance the simplicity of business operations, the Securities and Exchange Board of India (SEBI) announced on Friday that it has prolonged the timelines for mutual funds and portfolio managers to furnish their offsite inspection data to the market regulator.
This adjustment is anticipated to offer additional flexibility to fund houses and portfolio managers while ensuring adherence to regulations.
As outlined in SEBI’s most recent circular, mutual funds will now be granted 15 calendar days from the conclusion of each quarter to submit their daily data within a monthly file.
Previously, this deadline was set at 10 calendar days. This alteration will assist fund houses in optimizing their reporting processes.
Furthermore, Registrar and Transfer Agents (RTAs) will persist in submitting data on a continual basis.
SEBI has organized this data submission protocol as a component of its offsite inspection and surveillance framework.
The data is crucial for the regulator to oversee compliance with mutual fund regulations and uphold market transparency.
Mutual funds along with their associated RTAs must file data in the mandated format per SEBI’s instructions.
Likewise, portfolio managers will also receive 15 calendar days from the end of each quarter to provide their data.
They are required to submit comprehensive reports for all clients, which includes day-wise data for categories like ‘Client Folio AUM’ and ‘Client Holding Master’.
SEBI’s choice to extend the submission timelines is influenced by feedback from the sector.
"The timelines for submission of offsite inspection data have been decided to be prolonged," stated SEBI.
This initiative aims to alleviate compliance burdens while ensuring proper regulatory oversight of mutual funds and portfolio management services.
“The decision will be implemented immediately,” affirmed the market regulator.
In the meantime, reports indicate that the market regulator is developing a new penalty framework that would prevent brokerage firms from facing multiple fines for the same infraction.
